I am just starting to wholesale houses and I put a flyer out for birddogs. I am not quite sure what to tell them to look for. Can someone give me a clue.
What kind of properties are you looking at buying?
We need to know if you want to do Sub2, Cash Sale, LO, etc.
Let us know,
Jeremy Blunt
well Cash Sale, sub2 and shorts
So here in PA, it seems to be a no no to pay a bird dog. I also heard to make them part of the deal. How?? Someone clear this up please
Helixpoint,
The local Real Estate Boards impose regulation relevant to the distribution or aid in distribution of a homestead with the intent to protect the consumer (and in some rare cases monopolize the marketplace).
Whether or not this legislation is put into place in a criminal or a civil context, it does appear fairly evident that the enforcement of this legislation would be limited to that of:
a) When a consumer is being blind-sided (ie: you are acting on his or her behalf without proper licensing and steering him/her wrong)
b) You are continuously taking a “fee” for selling real estate.
If you are working with an investor, and you are paid by the investor, who has experience in real estate transactions, and you are not party to that transaction (ie: a consultant) you should, (this is not to be construed as legal advice) be ok, for the following reasons:
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You are taking a fee for selling information, not real estate (nobody can prevent you from charging $5.00 to tell him or her were the nearest gas station is, or where the nearest “deal” is)
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Even if legislation was in place to protect the consumer, you have conducted no harm to the consumer…so in a semi-perfect world, you can indeed pay for a lead on a house!
I think it is important to know, most investors are opposed to the local Real Estate Boards attempting to corner the market on Buying/Selling properties, I am certainly of the opinion that the local Boards would like to see no investors/creative RE at all so that they can continue to take a small chunk out of every property sold and have the properties sold according to their “rules & regulations”.
There is also such a thing as a simple Partnership Agreement, thereby making the bird dog and the investor principals in the transaction. The Bird Dog is bought out of the Partnership by the investor for and agreed upon consultant fee, thereby violating no State Statute.
John $Cash$ Locke
I don’t understand the original question.
You are looking for birddogs to find properties that, if you had unlimited time and resources, you would find on your own…correct?
Why not just tell them what YOU would be looking for if you were the one doing the legwork?
Well. First, I understand what you are saying John. Do you or anyone else have a simple Birddog agreement they would like to share?
As far as what to tell the birddogs, I basically have a few things to look for. I was hoping to brodden the list. I am new and I myself am not quite sure what I would be looking for when I “Drive for Dollars”
Boarded up houses
Vacant houses
FSBO’s
If you are looking for short sales, then have them do door knocking and their only objective is to schedule an apt for you not negotiate an agreement.
They can also go to a neighborhood and knock on doors and give them your flyer and business card, although this may not produce much.
Another alternative is to drive through neighborhoods and take pictures of vacant houses, but then you need to pay skiptracer to find the owners and try to buy the properties from them.
If you are going to be wholesaling the contracts, then I suggest you find out what your BUYERS will want. Build a BUYERS LIST. Then based on those criteria you can tell your birddogs what to go after.
Can anyone anwser this question. I already have my buyers list. I am just looking for some pointers to tell my Birddogs.
Yes, we can answer it, and the answer is…
you’re not ready to get birddogs, yet. If you do not know what you are looking for in deals, then it is simply impossible for you to tell someone else what you’re looking for.
Maybe you’re hoping that you’ll tag an “experienced” birddog. That’s doubtful. Birddogs exist because they wish to learn the trade from experienced investors. If you have nothing to offer, what’s in it for the birddog? Once they realize that you have little more experience than them, they will move on/quit.
As for experienced birddogs, that is usually another investor that finds a deal that they either don’t want or simply don’t have the time to work, so they present it to a close knit group of other like-minded investors that may be interested. Again, your knowledge and/or experience level plays a big part in your getting into that kind of clik.
Roger